AUD/USD confined in a narrow trading range around 0.7650

The AUD/USD pair was seen struggling to build on to Friday's sharp rebound from 50-day SMA and traded with slight negative bias around 0.7650 region.

The pair on Friday caught up strong bids around 50-day SMA support after easing Deutsche Bank concerns lifted investor risk-appetite and boosted demand for higher-yielding currencies - like Aussie.

On the first trading day of a new trading week, the pair was confined within a narrow trading band despite of the prevalent risk-on environment as traders look forward to RBA monetary policy decision on Tuesday and a slew of Australian macro releases slated for release during the course of current trading week. 

In the meantime, today's release of US ISM manufacturing PMI would assist traders to grab some short-term trading opportunities, while broader risk sentiment might also provide some impetus for the pair. 

Technical levels to watch

Immediate upside resistance is seen at 0.7670 (Friday's high) above which the pair is likely to make an attempt towards reclaiming 0.7700 handle. A follow through buying interest above 0.7700 handle seems to boost the pair back towards 0.7732 (Sept. 8 high) ahead of a major upside hurdle near 0.7750.

On the flip side, weakness below 0.7630 immediate support should drag the pair back towards 50-day SMA support, currently near 0.7600 handle, which if broken decisively now seems to turn the pair vulnerable to head towards testing its next major support near 0.7535 level.